Fitch ups Mangistau to BB+

Fitch Ratings has today upgraded the Kazakhstan region of Mangistau's long-term foreign-and local-currency ratings to BB+ from BB and its national long-term rating to A(kaz) from BBB+(kaz). The short-term foreign-currency rating is affirmed at B.

The outlook remains stable.

The upgrade reflects the region's almost debt-free status, strong and improving budgetary performance, Fitch said. It also reflects the expectation of further improvement of its operating balance, which is underpinned by changing relations between the region and the central government, the agency added.

The region's local economy is strong, but highly concentrated, Fitch said. A strong bias toward the oil industry causes extremely high tax concentration in the region and makes its economy vulnerable to exogenous shocks from the international oil market, the agency said.

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